The report argues that fragmentation in the stablecoin market could pose a threat to financial stability across the globe. According to the Financial Stability Institute (FSI), there is a lack of uniformity in defining and categorizing stablecoins, as well as inconsistencies in the disclosure of reserve assets by issuers.
These discrepancies could potentially jeopardize financial stability. To address these concerns, the report recommends the implementation of a globally consistent regulatory framework to mitigate risks, prevent regulatory loopholes, and ensure equity within the digital asset space.
Both the International Monetary Fund and the Financial Stability Board support this call for international standards, either through the issuance of universal norms or the development of regulatory guidelines for stablecoins.
